El Camino College Operations And Supply Chain Management Assignment Help - Accounting Break Even

Question - The Solar Calculator Company proposes to invest $5 million in a new calculator-making plant that will
depreciate on a straight-line basis. Fixed costs are $2 million per year. A calculator costs $5 per unit
to manufacture and sells for $20 per unit. If the plant lasts for three years and the cost of capital is
12%, what is the accounting break-even level of annual sales? (Assume no taxes.)
133,334 units
272,117 units
244,444 units
466,666 units

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